Latest Fundamentals Of Crude Oil
Oil prices settled higher in see-saw trade on Friday, as political tensions in the Kurdistan region continued to disrupt crude supplies.
Oil exports from Iraq’s Kurdistan towards the Turkish port of Ceyhan were flowing at average rates of 216,000 barrels per day versus the usual flows of 600,000 bpd, a shipping source said.
The supply disruption in Iraq comes amid ongoing political uncertainty in the region following conflict between Iraqi and Kurdish forces. Iraqi troops marched toward Northern Iraq earlier in week and regained control of two major oilfields from Kurdish forces.
Meanwhile, in the U.S., investors mulled over data showing oil drilling activity fell for a third week in a row, extending a two-month drilling decline.
Oilfield services firm Baker Hughes said Friday that its weekly count of oil rigs operating in the United States fell by seven to 736, the lowest level since June.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for domestic oil production.
WTI Crude futures tacked on 33 cents, or around 0.6%, to end at $51.90 a barrel by close of trade. For the week, WTI prices rose about 0.8%, the second-straight weekly gain.
The global benchmark ended the week with an increase of approximately 1%, supported by growing indications that the market was starting to rebalance.
In a speech Thursday, Mohammad Barkindo, secretary-general at the Organization of the Petroleum Exporting Countries, said that the oil market is balancing at an “accelerated pace,” and demand will continue to rapidly grow in coming decades.
But; we need to keep in our minds that OPEC needs to extend its agreement to reduce oil output beyond its current March 2018 expiry date in order to rebalance the market.
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